China-Thailand Securities: The advantageous leading position in the soft drink industry's subdivided market is expanding, benefiting fully from cost advantages.

Zhongtai Securities released a research report stating that in the first half of 2025, the offline sales of domestic soft drinks in the sub-industry have seen an increase compared to the same period last year. Sports drinks/plant-based beverages>ready-to-drink fruit juice>bottled water>ready-to-drink tea>dairy beverages/plant protein beverages, with sales of ready-to-drink tea and dairy beverages/plant protein beverages showing a slight decline compared to the previous year. In the bustling track with growth momentum in the industry, leading enterprises further strengthen their advantages and achieve revenue-led growth; secondly, companies in mature tracks can achieve steady growth through regional advantages, product innovation, and other differentiation strategies; while other traditional beverage companies face pressure in operations due to competition in existing markets, seasonal differences in product attributes, and channel adjustments. Investment advice: Main theme one: Select industries with growth momentum, focus on industry leaders, and interpret industry growth dividends + logic of market share enhancement. 1) Energy drinks & electrolyte water; 2) Sugar-free tea. Main theme two: Continuation of the raw material cost dividend within the year, with better earnings certainty + high dividend payout ratio.